News and commentary on the latest securities developments.
The information on this Blog is prepared by Cosgrove Law Group, LLC for informational purposes only and is not intended to and does not constitute legal advice.

Monday, July 9, 2012

We previously reported on Diamond Food’s SEC
investigation into certain crop payments the company made to walnut
growers at the end of its 2010 fiscal year. See Diamond
Foods SEC Investigation.

On Wednesday, shareholders filed a lawsuit against the
board of Diamond Foods for costing it the chance to buy its rival
Pringles from The Procter & Gamble Co. In the midst of the
accounting scandal in which crop payments allegedly were improperly
reported to inflate the company’s 2010 earnings and shift costs
into its 2011 fiscal year, Diamond’s stock price fell from last
year's high of $96.13 to Wednesday's close of $17.49, a loss of about
80 percent.

The lawsuit, being held in Delaware, is a derivative
complaint, meaning the shareholders seek permission to step into the
shoes of the company and hold directors and officers responsible for
harm they caused.

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